Financial Red Flags and Scams to Watch Out For
Unfortunately, the end of the year is also a prime time for financial scams targeting seniors. Scammers know you might be focused on holiday preparations, charitable giving, and tax matters, and they use this as an opportunity to strike. Here are three common scams to be wary of.
1. Fake Charity Scams: During the season of giving, criminals create fake charities or impersonate real ones to steal your money. Be suspicious of any charity that uses high-pressure tactics, refuses to provide detailed information about how donations are used, or thanks you for a pledge you don’t remember making. Never donate with cash, gift cards, or wire transfers. Instead of clicking on a link in an email, go directly to the organization’s website to donate. You can verify a charity’s legitimacy through watchdog sites or the IRS’s own search tool.
2. The Grandparent Scam: This cruel scam plays on your emotions. A scammer will call you pretending to be your grandchild who is in trouble—often claiming they’ve been arrested or in an accident in another country and need money wired immediately. They beg you not to tell their parents. The urgency and secrecy are red flags. If you get a call like this, hang up and call your grandchild or another family member directly to verify the story. Never wire money or provide gift card numbers based on a frantic phone call.
3. IRS Impersonation Scams: As you begin thinking about taxes, be aware of scammers pretending to be from the IRS. They might call, email, or text you, claiming you owe back taxes and will be arrested if you don’t pay immediately using a gift card or wire transfer. The real IRS will never initiate contact this way. Their first contact is almost always through physical mail. Furthermore, the IRS does not demand immediate payment over the phone or threaten you with arrest by local police.
